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Fuel prices in Türkiye increased on Thursday after global oil markets climbed amid tensions linked to the Iran war, pushing retail pump prices higher across the country.
The latest adjustment raised gasoline prices by ₺0.92 per liter, while diesel prices increased by ₺3.11 per liter, according to the updated pump rates that took effect the same day.
In Istanbul, gasoline rose to ₺59.32 ($1.35) per liter, while diesel reached ₺63.51. Prices were slightly higher in other large cities: gasoline climbed to ₺60.26 in Ankara and ₺60.54 in Izmir, while diesel rose to ₺64.61 in Ankara and ₺64.88 in Izmir.
Fuel pricing in Türkiye is calculated by combining refinery costs with the special consumption tax (SCT), value-added tax and distribution margins.
Authorities reinstated a tax adjustment mechanism, known as the escalator system, to cushion the impact of rising global oil prices on domestic pump rates. The mechanism, which had been discontinued in 2022, was brought back through a presidential decree on Thursday to ease inflationary pressure.
Before the measure took effect, the anticipated price increase was estimated at ₺12.45 per liter for diesel and ₺3.68 per liter for gasoline. After the adjustment, the tax system absorbed part of the increase, reducing the final pump prices.
Under the mechanism, taxes can be reduced by up to ₺14.8277 per liter for gasoline, ₺13.9006 per liter for diesel and ₺11.3830 per kilogram for LPG.
Treasury and Finance Minister Mehmet Simsek said the measure aimed to shield the economy from geopolitical shocks affecting energy markets.
"To limit the impact of geopolitical developments on the economy, we have taken an important step as public finances to prioritize disinflation," Simsek said in a statement shared on social media.
"We are temporarily activating the escalator system to reduce the impact of what we consider a temporary oil price shock and covering up to 75% of fuel price increases through taxes. We will continue to support disinflation without compromising fiscal discipline," he added.
Since U.S.-Israeli strikes on Iran began last Saturday, Brent crude briefly tested $85 per barrel earlier this week and trades around $83.5 on Thursday.
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